URBAN COUNCILS ACT Chapter 29:15 (i) in the case of the consolidated loans fund— (i) the loan debt of that fund is, or advances from the fund are, not covered by borrowing powers of the council or authorized under the repealed Act; or (ii) any conditions attaching to any borrowing power or to any authority granted under the repealed Act in regard to repayment and provision for repayment have not been duly observed by the council; or (iii) the provisions of the scheme prepared and approved in terms of subsection (1), as read with any variation in terms of subsection (3), of section two hundred and ninety-seven in relation to that fund have not been complied with; or (j) any moneys derived from a grant have not been spent according to the conditions under which the grant was made; or (k) internal control procedures have been unsatisfactory in any material respect; or (l) the requirements of the auditor have not been complied with; the auditor shall include in his report made in terms of subsection (3) a statement or statements to that effect. (5) The auditor shall transmit the audited balance sheets and accounts, together with his report in terms of subsection (3), to the town clerk who shall submit it to the council at its next meeting. 307 Council’s duty re accounts and auditor’s report (1) Upon receipt of the audit report from the town clerk in terms of subsection (5) of section three hundred and six the council shall take note of the report and forthwith refer the report to the audit committee established in terms of section ninety-seven. (2) Upon receipt of the audit report in terms of subection (1) the audit committee shall require the town clerk to respond to the audit report forthwith. (3) The audit committee shall, within fourteen days of receiving the town clerks’s response or at its next meeting, whichever is the later, consider the documents referred to in subsection (5) of section three hundred and six and subsection (2), and as soon as it has completed its consideration of such documents, whether at that meeting or at an adjournment thereof, it shall submit the documents together with its own report thereon to the council. (4) At a meeting held within one month after the audit committee has, in terms of subsection (3), submitted its recommendations, the council shall itself consider such documents and the report of the finance committee thereon and at that meeting or at an adjournment thereof the council shall— (a) if it finds the balance sheets and accounts reflect a true and fair view of the financial position of the council and its transactions and of the results of its trading, certify them accordingly under the hand of the person presiding at that meeting; (b) if the auditor has reported on any irregularities, decide what action should be taken in regard to the matters reported upon by the auditor and inform the auditor accordingly. (5) When any meeting referred to in— (a) subsection (3) is adjourned by the audit committee; (b) subsection (4) is adjourned by the council; that meeting shall be resumed as soon as is possible in the circumstances. (6) The council shall not go into committee when considering the documents and report of the audit committee at the meeting referred to in subsection (2). (7) A copy of the final accounts, together with the auditor’s report, shall be kept by the town clerk at the office of the council and shall be open to inspection by any person during office hours, and any person may take extracts from any of those documents and may obtain copies thereof at such charge as may be fixed by the council, which shall not exceed such amount, if any, as may be prescribed. (8) The council shall, within fourteen days after the final accounts have been certified in terms of paragraph (a) of subsection (4), submit them, together with the auditor’s report, to the 125